Demand up for 1BHK and 2BHK!
The introduction and easy availability of home loans changed the traditional course of home purchase by an average Indian. Initially, people used to buy homes with their savings and the budget played a very crucial role. Over the past 10-12 years, the rapid globalization and the spread of multinational companies in different parts of the country had made the homebuyers increasingly confident about the steady income and good increments. As a result, the homebuyers had sidelined the basic 1BHK & 2BHK apartments and focused on buying the larger and more luxurious units.
However, things have changed over the past 2-3 years, in the present scenario of high property prices and even higher home loan interest rates, the buyers are reconsidering their option of investing in luxury apartments.
The recession of 2009, uncertain job market and a gloomy macro-economic scenario has forced people to consider the option of buying the more affordable one-bedroom apartments rather than investing heavily in luxury homes and making the future unstable. With inflation being the current trend in the developing economy like India, people are more and more feeling the financial burdens from every sphere of life. They are more satisfied with having a small home, with manageable debt, in their name rather than not having one or having to sell a larger one later due to financial crunch.
The property developers were also staying away from the affordable segment due to lower margins; however, with a change in homebuyers’ sentiment, the developers have spotted an opportunity in one-bedroom segment and have started offering various projects under the category. The prominent developers who were focusing on luxury apartments have been facing tight liquidity and have thus started constructing smaller apartments. The developers are of the view that with bleak chances of a rapid revival of the market, majority of buyers can only afford 1BHK and 2BHKhouses, which still costs in lakhs.
Let us have a look at the changing trends in the key real estate markets of Delhi, Mumbai and Bangalore.
Bangalore property: Another reason for preference of 1BHK and 2BHK apartments in Bangalore is more often relocation between cities. For example, as people are being recruited by the IT companies in Bangalore, the new settlers are increasingly looking to buy 1BHK and 2 BHK apartments mainly due to small family size and also because of the fact that they might relocate again in the future.
Delhi property: Being the capital, Delhi is a diverse and dense city. It shelters individuals from all walks of life and from all corners of the country. The city has numerous job opportunities starting from daily laborers to executives, from students to working professionals and industrialists. Every day thousands of people migrate to Delhi for various reasons and each of the individual requires an accommodation.
The people who are engaged with the distinguished MNC like companies need the appropriate and suitable living conditions that not only provides them comfort but also maintains there social status and fits well within the budget. With the soaring high property prices, 1BHK and 2 BHK flats in Delhi are greatly fulfilling for every kind of requirements. For satisfying the residential needs of these individuals, these flats in Delhi are also exceedingly equipped with full amenities. Moreover, many organizations offer these accommodations to their employees for sale at discounted prices.
Mumbai property: Mumbai has also been striking the chord with individuals looking for a reasonable deal for a house. The demand for affordable housing in the area has been on a high. The Indian society is experiencing the extended years of bachelorhood; thus, increasing the demand for studio, 1BHK and 2BHK apartments. Increasingly, the major investors and homebuyers are in the age group of 30 to 40 years. Keeping in view the property prices and the small family size in the subject age group, the demand for 1BHK and 2 BHK flats in Mumbai has been substantially increasing. The prices in these segments are in the affordable category for youngsters belonging to automobile or IT sectors.
Overall, with the demand and sale of smaller units, the builders and developers do not need to lose on their profit as they do not need to reduce the prevailing market rates and the buyers can also fulfill their aspirations of being a homeowner by paying an amount that fits in their budget.